Atlantic City casino closures could boost U.S. jobless claims

A pair of casino shutdowns in Atlantic City could temporarily boost jobless claims over the next week or two.

More than 5,000 people have lost their jobs following the closings of the Revel and Showboat casinos. Revel closed its doors Tuesday morning, while Showboat closed Sunday. Showboat was a 27-year mainstay, but the Revel had opened only two years ago.

The surge in unemployment applications in New Jersey could create a small bump in the national jobless claims data in the first week of September, though seasonal adjustments used by government economists might lessen the impact. The report for the first week of September will be released on Sept. 11.

U.S. jobless claims have been moving lower for months and recently hit an eight-year low. Last week, initial claims dropped below 300,000 for the fourth time in six weeks, helped in large part by the extremely low level of layoffs. While the gambling industry in Atlantic City has seen significant declines, most sectors of the U.S. economy are expanding instead of shrinking.